Thursday, January 21, 2010

GS Head & Shoulders Set Up

Things are definitely starting to look better for the bears, but I'm not convinced this is it just yet. On days like today I wonder if anything else matters besides the king of kings, Goldman Sachs. Intraday the stock broke its' 200 dma and completed a pretty big H&S on massive volume (see above) after reporting record earnings and basically getting yelled at by Obama. In the end, GS closed just above the key level so nothing is conformed yet.

Its not a good sign for the market that its leadership like GS, CME, FCX and GOOG are breaking down. Lets see how we do tomorrow, currently GOOG is down big in the AH after earnings beat expectations. As we are beginning to break important levels on indexes the odds of a sharp decline increase.

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